During the CNBC Trading Nation show, Wald said digital assets come with an upside reward; hence investors should expect prolonged volatility. His sentiments come as cryptocurrency proponents project low bitcoin volatility as institutional investors participate more in the sector. Wald advises investors to be resilient and brace for long volatility spells. The analyst, for instance, referred to recent bitcoin performance in February. The asset dropped from a high of $58,000 to about $44,000 within 24 hours but upheld its trend lines. Wald, however, remains skeptical about Bitcoin’s long-term viability stating that it cannot be determined at the moment.
Federal Reserve head rules out bitcoin replacing the dollar
He echoed the same sentiment as Federal Reserve Chairman Jerome Powell, who termed digital assets as highly speculative while stressing that bitcoin won’t be replacing the dollar. However, Powell backs bitcoin to be a gold substitute, but the price swings make it unfit to replace the dollar. Powell further maintained that the Federal Reserve is still exploring the possibility of rolling out a digital dollar but called for further research. Following the sentiments, bitcoin slightly dropped on March 22, 2021, by about 3%. However, by press time, the price had recovered 1.2% to trade at $55,901, according to data provided by CoinMarketCap. Watch the video: Trading Nation: Bitcoin backs off highs after Powell comments
